Restoration Hardware cut its outlook on slow holiday sales, and its stock is crashing

Restoration Hardware on Thursday lowered its outlook for full-year earnings per share (EPS), citing slow holiday sales. Its shares plunged by as much as 18% in after-hours trading.

The retailer of high-end furniture said it now sees full-year adjusted EPS in a range of $1.19-$1.29, down from $1.60-$1.80.

For the third quarter, its adjusted EPS topped the forecast for $0.16, at $0.20.

Restoration Hardware shares plunged 57% this year through the market close on Thursday, as wealthy shoppers reigned in spending. The company said it was addressing several issues including the costs related to the launch of RH Modern — its offering of modern-style furniture — and the transition from a promotional to a membership model.

“While we are clearly disappointed in our fourth quarter outlook, we believe we are making the necessary investments and changes to position our business for the long-term,” CEO Gary Friedman said in the earnings statement.

The company also announced that its name will change in January to simply become RH. That’s the same as its stock ticker, which will remain unchanged.

NOW WATCH: Here’s how much you need to make to be in the top 1% of every state

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at